HMRC have released details of how the Job Retention Bonus scheme will operate. If you meet the qualifying criteria you will be able to claim a £1,000 ‘bonus’ from the Government for each employee who has been furloughed and then continuously employed with you until 31 January 2021.
The qualifying criteria begin in November. So, you will need to consider this now.
- The bonus is paid to the employer and there is no requirement to pass the bonus on to the employee.
- The claim window will run from 15 February 2021 to 31 March 2021. Your payroll will need to be up to date. HMRC will be validating claims by reference to the payroll RTI data you have submitted.
- The employee must have been furloughed at some point under the CJRS and continuously employed to 31 January 2021.
- Claiming for the Job Support Scheme which starts in November does not affect the JRB claim.
- The employee must have received taxable pay of at least £1,560 across the three tax months between 6 November 2020 to 5 February 2021. Taxable pay is the figure before any PAYE code adjustments.
- That’s not £1,560 per month, it is the total over three months.
- The employee must have received some taxable earnings in all three months to qualify.
- The RTI reports for the three months must have been on time and accurate.
- The employee must be employed until 31 January 2021 and not placed on notice of retirement, termination or redundancy before that date.
- Anything that reduces gross pay, such as salary sacrifice or certain pension arrangements has to be taken into account when establishing the figure of taxable pay.
- The grant is taxable income for Corporation Tax and Income Tax purposes. If the person receiving the grant is employing someone in a domestic setting eg Nanny or domestic staff, it is not classed as taxable income however.
- You can claim the Job Retention Bonus for individuals who are not employees, such as office holders or agency workers, as long as you claimed a grant for them under the Coronavirus Job Retention Schemeand the other Job Retention Bonus eligibility criteria are met.
Further guidance on how to make the claim will be issued in the New Year. If you have any queries, or unusual pay patterns act now. Get in touch with your usual BHP contact.
Reminders :
The Coronavirus Job Retention Scheme ends on 31 October 2020. All claims and adjustments must be made by 30 November 2020.
Review your CJRS claims to date if you think you may have made a mistake. Errors need to be corrected under an Amnesty by 20 October, or by 90 days after the claim ceases to be valid.
The Job Support Scheme will begin in November. This will allow you to keep staff on part time and receive a grant towards the cost of the employee’s salary.
